topic Re: Collection Increase Balance in Rebuilding Your Credit

Collection Increase Balance

Anonymous — Tue, 14 Mar 2017 03:58:24 GMT

Maybe I am using the wrong keywords. I have been trying to clean up my credit. Now two collections that I had over a year increased their balance by $1. One is medical and the other is a cc CO. Can they do that? I want to remove them.

Re: Collection Increase Balance

stargazer25 — Tue, 14 Mar 2017 04:21:57 GMT

It's possible that you may have accrued interest as minimal as it may be. A change in balance that small will at best get you a correction. It's not the basis for a removal.

Re: Collection Increase Balance

Anonymous — Tue, 14 Mar 2017 04:28:02 GMT

The medical I was going to try to either do the whychat medical collection steps or writing the office manager. Two days after I paid one card down two of the collection companies started added $1. My score dropped 40 pts. I don't know if I should skip my plan and just dispute with the CRA.

Re: Collection Increase Balance

stargazer25 — Tue, 14 Mar 2017 04:36:33 GMT

It's possible that you poked the sleeping bear and the accounts just updated.

I can't make comment on the whychat since I didn't go that route with my medical and we don't talk about it here on these forums.

Disputing with the CRA will only get you a correction at best. Also if you over dispute one single a few times eventually they will you frivolous.

Re: Collection Increase Balance

RobertEG — Tue, 14 Mar 2017 17:27:37 GMT

Debt collectors are explicityly permitted to increase the amount of a debt under collection provided that the contract that created the debt permits the continued accrual of interest or charge of other fees, or the additional amount is otherwise permitted by law. See FDCPA 808(1).

Most account agreements include standard terms that permit continued accrual of interest on delinquent debts.

Not paying a debt is not basis for ending a consumer's obligation to pay interest on borrowed or owed debt.

Even if additional interest is not permitted, any dispute would relate only to the accuracy of the reported debt balance.

Successful resolution of the dispute would mandate correction of the balance, and would not extend to any requirment to delete the otherwise accurate collection.